Electricity prices set to rise

From October to November the price of electricity to households, which declined by more than 12 per cent from March to October, rose by just over two per cent. The overall consumer price index showed a 0.2 per cent increase from October, and the 12-month growth rate in November was 2.3 per cent.

At the same time as the price of electricity (including mains hire and duties) has increased, signals from the market indicate that several power plants will be raising their prices in the months to come. The price level for electricity in November is, however, just over six per cent under the level of 12 months ago.

Electricity prices have decreased sharply over the course of 1998, thereby helping to curb overall inflation. By October, prices had declined by more than 12 per cent since March, and were then at a level not seen since the end of 1994. It is primarily power prices that have declined, and most power plants have lowered their prices over the course of the year.

0.2 per cent increase in consumer price index

The consumer price index rose by 0.2 per cent from 15 October to 15 November 1998. More expensive electricity and higher food prices were the main contributors, while cheaper petrol and lower phone charges were offsetting factors. In the last 12 months, the consumer price index rose 2.3 per cent, against 2.2 per cent in October.

Harmonized consumer price index

The Norwegian Harmonized Index of Consumer Prices, which is compiled for international comparisons of inflation, rose by 2.1 per cent from November last year to November this year, after rising 0.2 per cent from October to November this year.

New Statistics
Consumer price index, 15 November 1998.
The statistics are published monthly in the Weekly Bulletin of Statistics. For more information contact: Frode.Bendiksen@ssb.no, tel. +47 21 09 44 27, Kari-Anne.Hovland@ssb.no, tel. +47 21 09 47 22, or Lasse.Sandberg@ssb.no, tel. +47 21 09 47 16.

Weekly Bulletin issue no. 51, 1998